ATEHNS: Group of 20 finance officials meeting in China this weekend should agree on a broad-based approach to support consumer demand, limit private-sector debt and implement structural reforms to combat deepening risks to growth, the International Monetary Fund said on Thursday.

The IMF, in a briefing note to G20 finance ministers and central bank governors gathering in Chengdu, said that reducing the uncertainty surrounding Britain’s exit from the European Union would help limit an adverse impact.

“A smooth and predictable transition to a new relationship between the UK and the EU that as much as possible preserves the gains from trade is essential,” the IMF said in the report.

“While uncertainty about the outcome of negotiations remains, policymakers should stand ready to act decisively should financial market turbulence threaten the global outlook.” The G20 note follows the IMF’s move on Tuesday to cut its global growth forecasts again due to uncertainty caused by the June 23 Brexit vote, to 3.1 per cent for 2016 and 3.4 per cent for 2017 — a 0.1 percentage-point reduction for each year While the IMF said short-term demand needed continued support, it also urged officials to focus on policies that support medium-term and long-term growth, such as those that facilitate balance sheet repair for banks and companies, and reform labour and business sectors.

FSB statement:

Also, the world’s financial system coped well with market volatility following Britain’s vote last month to leave the European Union, the global Financial Stability Board said on Thursday.

The FSB is chaired by Bank of England Governor Mark Carney and coordinates financial regulation for the Group of 20 economies.

At a meeting in China, the board looked at market volatility following the United Kingdom’s vote to leave the European Union, which sent sterling to its weakest level in three decades. “During this period, the global financial system has continued to function effectively,” the FSB said in a statement.

“Authorities are monitoring market developments and stand ready to address any financial stability issues, should they arise,” it said.